Tech

Intel expected to report higher revenue, profit

BenjaminPimentel

SAN FRANCISCO (MarketWatch) -- Intel Corp. will kick off the earnings season among technology companies next week, with analysts anticipating higher sales and profit from the world's biggest chip maker, underscoring the rebound in the microprocessor market.

Intel
INTC, -0.66%
will report quarterly financials next Thursday. The tech giant also rolled out new products this week at the Consumer Electronics Show in Las Vegas, including new PC chips based on its 32-nanometer technology. Read more about Intel's faster processors.

Analysts currently expect the Santa Clara, Calif.-based company to post earnings of 30 cents a share, on revenue of $10.2 billion, according to a consensus survey by Thomson Reuters.

That would represent a dramatic improvement from the year-earlier period -- when Intel reported earnings of 4 cents a share on revenue of $8.2 billion -- when chip makers were taking a beating in the market downturn.

"We anticipate the company will report a solid quarter, with revenue and gross margin beating the midpoint of company guidance of $10.1 billion and 62%," Lazard Capital analyst Daniel Amir wrote in a note.

Alex Gauna of JMP Securities said Intel is "entering 2010 with good product momentum and further cyclical headroom."

"We are reiterating our market outperform rating and $28 price target on Intel ahead of what we expect to be a solid December quarter report," Gauna wrote in a note.

In fact, the December quarter also capped what had been a tough year for Intel, as it reeled from major setbacks related to antitrust allegations -- including a hefty fine imposed by the European Union and new legal actions by the Federal Trade Commission and New York's attorney general.

In addition, Intel settled its legal disputes with rival Advanced Micro Devices Inc.
AMD, -0.35%
and it's widely seen as benefiting from the recent uptick in chip demand.

Analysts say the industry is also poised to benefit greater corporate demand once businesses begin upgrading and replacing aging systems.

"We believe the recovery is moving from a bounce back in consumer PC purchases in 2009 to an enterprise recovery in 2010," according to Amir. "We believe Intel is well positioned to benefit from an upgrade in corporate PCs."

Intraday Data provided by SIX Financial Information and subject to terms of use. Historical and current end-of-day data provided by SIX Financial Information. All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.